Nexa Reports First Quarter 2022 Exploration Results

Rhea-AI Summary

Nexa Resources announced its first quarter 2022 drilling and assay results, achieving 27,721 meters of drilling across multiple sites. The exploration program, which aims for a total of 123,300 meters in 2022, faced initial challenges due to the rainy season. Key highlights include significant mineral intersections at Cerro Lindo and El Porvenir, with results showing high-grade mineralization. Ongoing efforts at Aripuanã and Morro Agudo aim to upgrade Mineral Resources classification. The company anticipates further production ramp-up starting in the second quarter.

Positive

• Achieved 27,721 meters of drilling in Q1 2022, part of a larger 123,300 meter exploration program.
• Confirmed high-grade mineral intersections at Cerro Lindo and El Porvenir, enhancing resource prospects.
• Continued exploration at Aripuanã and Morro Agudo aims to upgrade mineral resource classifications.

Negative

• Initial drilling activity lower due to rainy season and contractor mobilization.

LUXEMBOURG / ACCESSWIRE / April 25, 2022 / Nexa Resources S.A. ("Nexa Resources", "Nexa", or "Company") is pleased to provide today the drilling and assay results from the first quarter of 2022. This document contains forward-looking statements.

Summary

Nexa's Mineral Exploration program for 2022 comprise a total of 123,300 meters of drilling, of which 27,721 meters were executed in the first quarter of 2022 through 23 operating drill rigs. From this total 16,095 meters are from exploratory drilling (14 rigs) and 11,626 meters from brownfield infill drilling (9 rigs). As usual drilling activity is lower in the first quarter due to the rainy season and drilling contractors' mobilization, and we expect a production ramp-up from 2Q22 onwards.

In Peru, 12,970 meters were drilled in 1Q22 with eight rigs. At the Pasco Complex, the exploration continued to focus on the extensions of known satellite bodies like Porvenir Sur and Integración at El Porvenir highlighted by thick and high-grade new intersections. At Cerro Lindo, drilling focused on the Pucasalla target, continuing the work carried out in the previous quarter, aiming to expand the new VMS discovery, and at the mine site, on underground ore body expansion at orebodies 5B and 6 and the Festejo Oeste target, located southeast of the Cerro Lindo mine.

In Brazil, 13,180 meters of exploratory and infill drilling were executed with 13 rigs in 1Q22. At Aripuanã, exploratory drilling has been focused on the northwest extension of Babaçu where new drilling continues to confirm high-grade mineralization and infill drilling at the Ambrex orebody for resource classification upgrade and to investigate the Ambrex/Babaçu transition zone at depth. At Morro Agudo, Bonsucesso and Vazante brownfield drilling continued confirming mineralization continuity at depth.

In Namibia, 1,571 meters of exploratory drilling were drilled in 1Q22 with two rigs. Exploratory drilling continued to focus on exploratory targets at the Otavi and Namibia North projects to investigate potential areas with copper soil anomalies in favorable geology.

1Q22 Mineral Exploration Highlights

• At Cerro Lindo, the VMS mineralization at the Pucasalla target located 4.5 kilometers northwest of the Cerro Lindo mine is confirming continuity of mineralization with intersections such as 5.5 meters with 2.04% Zn; 0.94% Pb and 5.5 meters with 1.81% Pb; 145.07g/t Ag.
• At El Porvenir, the Porvenir Sur target, confirmed mineralized intersections like 11.1 meters with 1.66% Zn, 1.82% Pb, 97g/t Ag, 0.76g/t Au and 4.6 meters with 3.77% Zn, 1.57% Pb, 126.48 g/t Ag, 0.69 g/t Au. At Integration orebody, drilling confirmed mineralization with 6.0 meters with 0.38% Zn, 0.22% Pb, 202.72g/t Ag and 0.27g/t Au.
• At Morro Agudo, infill drilling at northern Bonsucesso confirmed thick ore intersections such as 29.6 meters with 6.50% Zn and 1.25% Pb, 20.5 meters with 6.75% Zn and 1.70% Pb, and exploratory deeper intersection like 28.3 meters with 3.06% Zn and 0.29% Pb.
• At Aripuanã, exploratory drilling at Babaçu and infill drilling at Ambrex continued to confirm thick stratabound massive sulfide and stringer intersections. The drilling programs for 2022 at Ambrex and Babaçu aim to provide upgrade in Mineral Resources classification and also expansion of the current Mineral Resources.

Commenting on the report, Jones Belther, Senior Vice-President Mineral Exploration & Technology, said "Our brownfield exploration programs have continued to progress and with the results that we're obtaining, we believe we're heading in the right direction to extend our current life of mine. Cerro Lindo ore body 5B has continued to be extended to the southeast highlighted by hole PECLD06066 with 8.8 meters grading 1.79% Zn and 0.80% Pb and continued drilling at Pucasalla keeps confirming continuity of zinc and lead mineralization. At the Pasco complex, the Porvenir South and Integration orebodies continue to be expanded and at the Chercher orebody in the San Gerardo open pit we obtained several mineralized drill intersections such as 7.9 meters with 2.53% Zn, 1.92% Pb and 11.05 g/t Au. At Morro Agudo/Bonsucesso, infill and deep exploratory drilling continues revealing thick and high grade mineralized intersections that will increase resources in the north extent of this mineralized body. At Aripuanã, the Babaçu NW revealed thick intersections with still pending assay results.

Exploration activities in 1Q22 have been focused on our target zones and infill drilling at Aripuanã and Morro Agudo. For 2Q22, we expect to complete 20,750 meters of exploratory and infill drilling including 13,600 meters in Peru, 5,050 meters in Brazil and 2,100 meters in Namibia looking to discover new orebodies such as Pucasalla".

For a full version of this document, please go to our Investor Relations website at: http://ir.nexaresources.com

About Nexa

Nexa is a large-scale, low-cost integrated zinc producer with over 60 years of experience developing and operating mining and smelting assets in Latin America. Nexa currently owns and operates five long-life underground mines - three located in the Central Andes of Peru and two located in the state of Minas Gerais in Brazil - and is developing the Aripuanã Project as its sixth underground mine in Mato Grosso, Brazil. Nexa was among the top five producers of mined zinc globally in 2021 and also one of the top five metallic zinc producers worldwide in 2021, according to Wood Mackenzie.

Contact: Roberta Varella - Head of Investor Relations | ir@nexaresources.com
+55 11 94473-1388

SOURCE: Nexa Resources S.A.

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FAQ

What were Nexa's drilling results for Q1 2022?

Nexa achieved 27,721 meters of drilling in Q1 2022 as part of a total 123,300 meter program.

What is Nexa Resources' focus for 2022?

Nexa's 2022 exploration program focuses on expanding known mineral resources and confirming high-grade intersections.

How did weather affect Nexa's exploration activities in Q1 2022?

The rainy season initially impacted drilling activity, leading to lower output in Q1 2022.

What are the expected outcomes from Nexa's exploration in Q2 2022?

Nexa expects a ramp-up in production and completion of 20,750 meters of drilling in Q2 2022.